Indian Financial System Code (IFSC) is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT and RTGS system

- This is an 11 digit code;

first 4 alpha characters represent the “bank”,

5th character is 0 (zero)

last 6 characters represent the “branch”

IFSC is used by the NEFT and RTGS system, to identify and route the messages appropriately, to originating / destination banks / branches.

1. What is a MICR Code?

Magnetic Ink Character Recognition (MICR) Code is a numeric code that uniquely identifies a bank-branch participating in ECS scheme.

MICR is a 9 digit code to identify the location of the bank branch;

- first 3 characters represent the “city”

- next 3 the “bank”, and

- last 3 the “branch”

MICR Code allotted to bank branch is printed on MICR band of cheques issued by bank branches

1. What does RTGS mean?

Real Time Gross Settlement (RTGS) is continuous (hence, real-time) settlement of funds transfers, individually on an order by order basis (i.e. gross amount, without netting). “Real Time” is processing of instructions at the time they are received. “Gross Settlement” is settlement of funds transfer instructions occurring individually.

Indian Financial System Code (IFSC) is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT and RTGS system

- This is an 11 digit code;

first 4 alpha characters represent the “bank”,

5th character is 0 (zero)

last 6 characters represent the “branch”

- IFSC is used by the NEFT and RTGS system, to identify and route the messages appropriately, to originating / destination banks / branches

6. What are the processing charges/ service charges for NEFT transactions

Broad structure is;

- Inwards transactions - credit to beneficiary accounts - Free

- Outwards Transactions -

Up to Rs 10,000 - not greater than Rs 2.50 + Service Tax

Above Rs 10,000 to Rs 1 lakh - not greater than Rs 5 + Service Tax

Above Rs 1 lakh and up to Rs 2 lakhs - not greater than Rs 15 + Service Tax

Above Rs 2 lakhs – not greater than Rs 25 + Service Tax

7. How soon does the NEFT credit appear in the beneficiary account?

- “Same day” for transactions processed between;

Monday to Friday – first 10 batches i.e. 8 am to 5 pm

Saturday – first 5 batches i.e. 8 am to 1 pm

- “Same day or Next day” for transactions processed between;

Monday to Friday – last 2 batches i.e. 6 pm and 7 pm

Saturday – last batch i.e. 1 pm

8. Can NEFT be used to transfer funds from / to Non Resident Ordinary (NRO) and Non Resident External (NRE) accounts?

Yes. NEFT can be used to transfer funds to NRO and NRE accounts in the country. Please also check adherence to the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.

9. Can NEFT be used to draw (receive) funds?

No. NEFT can be originated only to transfer / remit funds to a beneficiary

- ECS user initiates the transaction (via it's bank, known as sponsor bank). There needs to be an authorization/mandate given by the beneficiary for the transaction to complete. Beneficiary bank is known as destination bank.

Magnetic Ink Character Recognition (MICR) Code is a numeric code that uniquely identifies a bank-branch participating in ECS scheme.

MICR is a 9 digit code to identify the location of the bank branch;

- first 3 characters represent the "city"

- next 3 the "bank", and

- last 3 the “branch"

MICR Code allotted to bank branch is printed on MICR band of cheques issued by bank branches

4. Can ECS be used to transfer funds to Non Resident Ordinary (NRO) and Non Resident External (NRE) accounts?
Yes. ECS can be used to transfer funds to NRO and NRE accounts in the country. Please also check adherence to the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines

5. Is beneficiary updated of credits in their account under ECS Scheme?

ECS user is responsible to communicate to beneficiary, the details of updates. Destination banks are advised to ensure that the pass books / statements given to the beneficiary account holders reflect particulars of the transaction.

6. Is there any limit on the value of transaction under ECS

No. There is no value limit

7. What are the processing / service charges for ECS

Normally free of charge for Beneficiary/accounts of customers. Originating banks pay 25 to 50 paise per transaction, to clearing house and destination bank.

8. Can given ECS mandate by customer be withdrawn or stopped?

Yes. But customer has to give prior notice to ECS user in advance. This will ensure input files are updated, with mandates withdrawn or stopped by customers. Any mandate in ECS debit is on par with a cheque isused by a customer.

9. Can customer put a ceiling on debit amount, purpose, validity period of the mandate under ECS Scheme?

Yes. Customer and ECS user can decide these aspects. Mandate can contain ceiling on maximum amount of debits, specify purpose of debit and validity period of mandate.

Immediate Payment Service (IMPS) is a payment service introduced by National Payments Corporation of India (NPCI).

The service, launched as an instant mobile remittance solution in November, 2010 has today evolved as a multi-channel, multi-dimensional remittance platform. The IMPS platform today is capable of processing P2P(Person to Person), P2A (Person to Account) and P2M (Person to Merchant) remittance and transactions can be initiated from Mobile, Internet as well as ATM channel. In addition to banking customers,non-banking customers can also avail the IMPS facility through Reserve Bank of India (RBI) approved PPIs.